David Schwartz, Ripple CTO Emeritus, challenges the argument that CFTC rulemaking is « dead on arrival » due to the major-questions doctrine. The legal battle centers on whether prediction markets platform Kalshi should be regulated by the Commodity Futures Trading Commission (CFTC) or Nevada gaming authorities. In March 2025, the Nevada Gaming Control Board sent Kalshi a cease-and-desist letter claiming its sports-event contracts constituted an unlicensed sports pool under state gaming law, leading to an appeal to the 9th U.S. Circuit Court of Appeals. On Friday, this court upheld Nevada oversight, with Judge Ryan Nelson stating that Kalshi’s contracts have the hallmarks of sports betting, « a quintessential form of gambling » outside CFTC jurisdiction. Schwartz argues that Congress did not intend to replace state-regulated sportsbook gambling with exchange-traded products outside of state regulation.
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